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Level 5
March 7, 2020

Single Member LLC

  • March 7, 2020
  • 2 replies
  • 10 views

How should a Single Member LLC pay themselves? They have ADP and he is currently getting a w-2 and a 401k. ADP saying that a lot of customer have it st up this way. he is wanting to pay himself and pay all the appropriate taxes like a w-2. How should he have ADP set him up?

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    2 replies

    Intuit Community Champion
    March 7, 2020

    He cannot take a payroll on himself as a SMLLC unless his SMLLC has elected to be taxed as a S-Corp.

    Tiger5Author
    Level 5
    March 7, 2020

    and how do we know if he is selected to be taxed as an s-corp?

    Intuit Community Champion
    March 7, 2020

    Are you the preparer? Did you llc him?

    Just-Lisa-Now-
    Intuit Community Champion
    March 7, 2020

    An SMLLC is a disregarded entity for tax purposes, should be treated the same as any other sole proprietor, no payroll with W2.

    Unless they elected to be taxed as a corporation.  Who helped them create the LLC?

    ♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
    Tiger5Author
    Level 5
    March 8, 2020

    i dont know who LLC'd him. thank you 

    sjrcpa
    Level 15
    March 16, 2020

    Get the LLC documents. Frequently the law firm's name is on them.

    The more I know the more I don’t know.